Reinsurance giant Munich Re has estimated that global insured losses from natural catastrophe events reached $80 billion in H1 2025, marking the second-highest H1 figure since its records began in 1980.
The $80 billion in insured losses during H1 2025 compares to $64 billion in H1 2024 and is surpassed only by H1 2011, when losses were driven by a devastating earthquake and tsunami in Japan.
Munich Re also disclosed that worldwide, natural disasters caused overall losses of around $ 131 billion in H1 2025 (previous year, adjusted for inflation: $155 billion).
Notably, both overall losses and insured losses were significantly higher than the average for the previous ten years and the previous 30 years (adjusted for inflation: overall losses of $ 101/79 billion, insured losses of US$ 41/26 billion).
Weather disasters caused 88% of overall losses and 98% of insured losses, while earthquakes accounted for 12% and 2% respectively.
It will come as no surprise to readers that the US accounted for the largest share of natural disaster losses in H1 2025, particularly due to the wildfires around Los Angeles.
Wildfires in the Greater Los Angeles area were the costliest natural disaster of H1 2025, with overall losses estimated at $53 billion, about $40 billion of which was insured.
“Never before had wildfires caused such extensive damage. The overall losses and insured losses due to this single event were nearly twice as high as global wildfire losses in 2018, which had previously been the most expensive wildfire year,” Munich Re explained.
At the same time, numerous severe thunderstorms once again occurred in the US, triggering heavy rainfall and tornadoes.
According to Munich Re, the four most expensive series of storms, including severe tornado outbreaks, occurred in March, April and May, resulting in overall losses of around $19 billion, of which $14.6 billion was insured.
“Overall, losses from these kinds of storms (known as severe convective storms) in the US totalled $34 billion in the first six months of 2025. Around $26 billion of the losses were insured,” Munich Re added.
Elsewhere, despite multiple weather disasters, overall H1 2025 losses in Europe reportedly remained below the previous year’s figures, at around $5 billion.
Munich Re observed that Europe’s costliest natural disaster in H1 2025 was a series of thunderstorms with hail that hit France, Austria and Germany in June.
Insurance companies paid claims totalling some $0.8 billion, with overall losses amounting to $1.2 billion.
Meanwhile, H1 2025 losses in the Asia-Pacific and Africa regions totalled around $29 billion, slightly lower than the ten-year average. Only about $5 billion of the losses were insured.
Thomas Blunck, Member of the Board of Management at Munich Re, commented, “Climate change is a fact and is changing life on earth. Disasters like the one in Los Angeles have become more likely due to global warming, and they teach us a very important lesson: people, authorities and companies must all adapt to new circumstances.
“The best way to avoid losses is to implement effective preventive measures, such as more robust construction for buildings and infrastructure, to better withstand natural disasters.
“Such precautions can help to maintain reasonable insurance premiums, even in high-risk areas. And most importantly: to reduce future exposure, new building development should not be allowed in high-risk areas.”
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